NOVASTAR MORTGAGE FUNDING CORPORATION, as Depositor NOVASTAR MORTGAGE, INC., as Servicer and as Sponsor U.S. BANK NATIONAL ASSOCIATION as Custodian and DEUTSCHE BANK NATIONAL TRUST COMPANY as Trustee POOLING AND SERVICING AGREEMENT Dated as of...Pooling and Servicing Agreement • April 18th, 2007 • Novastar Mortgage Funding Trust, Series 2007-1 • Asset-backed securities • New York
With respect to each Class of Reallocable Certificates and its corresponding Class of Class N Certificates, such Certificate Principal Balance shall be allocated between the two based upon the Percentage Interests previously subject to Reallocation (with such Certificate Principal Balances initially allocated entirely to the corresponding Class N Certificates). For all purposes of this Agreement other than as specifically provided herein or than as deemed necessary by the Trustee in connection with the Reallocation mechanics (e.g., for purposes of determining the Principal Distribution Amounts, allocations of Realized Losses, and other rules relating to the calculations of distributions) the distinction between the Reallocable Certificates’ and the corresponding Class of Class N Certificates’ Certificate Principal Balances shall be disregarded, and they shall be considered to be the same.
